INFRASTRUCTURE
MANUFACTURING INFRASTRUCTURE
Neogen Group currently has five operational manufacturing sites which are located at Mahape, Navi Mumbai in Maharashtra, Karakhadi, Vadodara, Dahej SEZ, Pakhajan in Gujarat, and Sangareddy, Hyderabad. Together, the four sites are spread across a land area of approximately 58 acres. The Company has acquired BULI Chemicals India Private Limited in the month of May 2023 which has its facility located at Hyderabad spread across 5 acres.Also, the newly acquired land by Neogen Ionics Limited, wholly owned subsidiary of Neogen Chemicals Limited in December 2023, alone admeasures approximately 65 acres and will be the largest facility of the group.
All the five sites are well maintained with a large variety of reactor sizes, material of construction (MOC) with distillation columns and downstream processing including pressure filters dryers, etc., in different MOC. All our sites have adequate utilities for heating, chilling, and vacuum.
Neogen had successfully commissioned a greenfield inorganic chemicals facility at Dahej SEZ, Gujarat and had initiated commercial production at the plant in February 2020. With this, our inorganic production capacity had increased substantially enabling us to cater to the growing domestic and international demand for lithium-based products. Our inorganic products have been receiving encouraging response from new overseas customers.
After the inorganic chemical’s capacity expansion, the Company expedited its construction activities at the Greenfield project for organic chemical production at Dahej SEZ. In a significant development, we commenced Phase I commercial operations of Organic Chemicals at full scale at Dahej SEZ in September 2021 and given the robust demand visibility, we expedited construction at our Phase II expansion project and commissioned it in October 2021. With this, we are able to focus on niche complex chemicals that require multiple steps which has enhanced our earnings profile.
In our existing business, we are expanding our specialty organic chemicals capacity by 60 m³ through a brownfield project. Of this, 31 m³ has been commissioned in F.Y. 2022-23, and the remaining 29 m³ is anticipated to be commissioned during F.Y. 2024-25. The capacity of inorganic chemicals was increased from 1,200 MT (15m3 ) to 2,400 MT (30m3 ) in our existing inorganic MPP till March 2023.
The Dahej SEZ facility will greatly assist in enhancing our capabilities to carry out multi-step chemistry thereby augmenting our infrastructure for manufacturing Advanced Intermediates and for contract manufacturing business.
Further, Neogen has obtained the license from MU Ionic Solutions (MUIS) (a JV between Mitsubishi Chemical Corporation (MCC) and UBE Corporation and is a group company of The Mitsubishi Chemical Group (the group) a Japanese conglomerate) for availing its proprietary and confidential manufacturing technology for making Neogen’s electrolyte solutions at its manufacturing facility in India with a planned max installed capacity of upto 30,000 MT per annum. These electrolytes will be targeted by Neogen to meet the growing demand of lithium-ion cell manufacturers in India.
The above Technology License will allow Neogen to ensure that the manufacturing plant meets stringent global standards for quality, reliability, safety and efficiency for electrolytes production. It will also help Neogen to greatly reduce approval times with Lithium-Ion Battery makers. Neogen is honoured to be a recipient of this first-ever license issued by MUIS the part of MCC of electrolyte manufacturing technology anywhere in the globe. The group’s 3-decade long electrolyte manufacturing experience will be extremely beneficial for Neogen to build a robust global quality and safety standards approved electrolyte plant in India. With this arrangement, Neogen will be the first Indian company to have a proven global technology, to manufacture electrolytes at scale for lithium-ion batteries. This will allow Neogen to further enhance confidence of Indian customers.
Our manufacturing sites at Dahej SEZ, Pakhajan and Karakhadi, Vadodara has additional land available for future expansion. With this, we remain confident of continuing our sustainable growth trajectory in the years to come.